Japan, the country which behaved as if the pandemic is over and post which it was everywhere, has been slammed by the pandemic hard. After the UK fell into a deep recession, Japan’s economy too has been shrinking at a record-breaking rate, affecting all aspects from the life of a common man to international trade.
The country’s economy shrank at an annual rate of 27.8% in April-June, which is till now the worst on record as coronavirus slams consumption and trade, according to the government data released on Sunday. The cabinet office reported that Japan’s GDP fell drastically by 7.8% quarter on quarter. The numbers have been the worst since World War II, but since the comparable records began in 1980, the previous contradiction was recorded during the great depression, i.e., 2008-2009. The world’s third-largest economy was still recovering from the damage created by the depression when the virus outbreak struck late last year; thus, since then, the fallout has been gradually worsening both in the number of cases and the restrictions imposed on the people and the economy.
The GDP shrank 0.6% in the January-March period and 1.8% in October-December 2019. Recession is defined as the two consecutive quarters of contraction. Thus, Japan fell into recession in the first quarter of 2020.
Before the virus entered the country, in July-October 2020, it had a flat graph growth rate recording minimal growth. Due to the exports and imports being heavily dependent on China where the virus began and hence, subsidized. Thus, During the April-June 2019 quarter, the exports fell at a whopping annual rate of 56%, while private consumption dipped at an annual rate of nearly 29%, without a full lockdown of businesses to contain the virus and an attempt to keep the economy running which pushed the total number of confirmed cases to over 56,000.
Japan, due to the delayed lockdown, suffered the consequences of the same, Though analysts say that the economy will recover as the pandemic is curbed, some believe that the virus will leave its footprint in the long term and recovery will be a tough road to travel.
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